The founder of Melbourne-based gym chain Derrimut 24:7, Nikolaos Solomos, is facing legal action from the Australian Taxation Office, which alleges he owes more than $11 million in unpaid taxes.
Court Action Targets Personal and Business Debts
According to County Court documents, Solomos is being pursued for almost $10 million in business tax debts linked to two companies he directed: Derrimut Health & Fitness and Derrimut 24:7 Gym (SA). Both companies were allegedly under his control from September 2022 until January 2025.
In addition, the ATO is seeking over $1.4 million in unpaid personal income tax and associated interest, stemming from the 2022–23 financial year. The action follows a separate ongoing matter in the Federal Court, where one of Solomos’s companies is disputing the tax assessment and has asked to repay the debt through a payment plan.
At the time of writing, Solomos has not lodged a defence with the County Court.
Expansion Across Melbourne and Beyond
Derrimut 24:7 is currently Victoria’s most identifiable chain of gyms, with 15 metro Melbourne branches and 12 South Australia. The company has recently opened up in new suburbs, such as a massive Port Melbourne branch that was established at the end of 2024.
Although it is so much in demand, the gym chain has come under fire from local communities. In a 2022 case within Oakleigh, a Derrimut club licensed for just 180 members was reportedly hosting as many as 440 people inside. Overcrowding, lack of parking and safety concerns were the complaints from neighbours, resulting in enforcement action.
Past Controversies and Criminal Links
Solomos’s business journey has been marked by more than just rapid growth. In 2015, he was the target of a shooting outside his home in Burnside. The shooter, who was affiliated with the Comanchero motorcycle gang, pleaded guilty to endangering life and was sentenced to three years in prison in 2018.
The shooting was reportedly linked to tension between rival gym businesses at the time.
ATO Ramps Up Director Penalty Enforcement
If the County Court action succeeds, Solomos could face serious consequences, including being held personally liable for the unpaid business taxes. The ATO has increased its use of Director Penalty Notices in recent years, which allow it to recover unpaid tax debts directly from directors if they fail to meet their obligations. In similar cases, this has resulted in asset freezes and even bankruptcy proceedings.
Legal experts note that while payment plan disputes are not unusual, the size of this alleged debt and the dual court actions point to a major crackdown. The Federal Court is expected to hold a case management hearing later this month.
What This Means for Melbourne
Derrimut’s growth has reshaped Melbourne’s fitness scene, particularly in outer suburbs and new developments. But the financial and legal pressure now facing the chain could affect its future operations, especially if court rulings do not go in Solomos’s favour.
For gym members, staff and investors, the outcome could influence everything from membership terms to property leases. For other local business owners, the case is a reminder that tax obligations are under increasing scrutiny, particularly for directors in high-profile industries like health and fitness.
